What happens if I fail to repay the non-recourse loan for my stock at the end of the term? The borrower forfeits the shares pledged for the loan. So, you lose control of the shares that were used to obtain a loan:
Borrowing against your shares is often more suitable for investors that want to obtain funds as a loan, but not directly sell their shares in the market.
…on another point:
Loans can be processed quickly, since the shares are the value that is being borrowed against. If you accept a loan offer, the shares then get transferred to the loan provider. The best loan rates are offered for shares that trade with large volume. This indicates that the shares are liquid on their exchange.
The three most important pieces of information to submit to obtain a non-recourse loan quote are… #1 The name of the stock exchange where the shares trade, #2 The ticker symbol/stock symbol, for example GE, APPL, CSCO, and #3 The number of shares you are offering to obtain a loan.